August 8th, 2011
01:41 PM ET

Your take: Where do you stand on S&P downgrade?

[Updated at 1:41 p.m.] The inability of Congress and President Barack Obama to reach a deal to raise the debt ceiling sparked a firestorm of anger directed toward Washington. Readers said they were angry, disappointed and fed up. They had no problem about where to point the finger when it came to blame. Quite frankly there was downright outrage.

And now Standard & Poor's has downgraded the U.S. credit rating by one notch to AA+, removing it from the Triple A-club for the first time in history. Did S&P get it right? | A political miscalculation

As the market reacts to the downgrade status, wants to know how people feel about it. Grab a video camera and sound off on iReport here.

Some iReport contributors are already speaking out about the downgrade, whom it affects and how much the American public understands and cares about the issue.

Egberto Willies, a frequent iReport political commentator, says he believes that the S&P downgrade of the U.S. is “a fraud on the American middle class.”

“The reality is, Standard & Poor's and all these organizations are the same companies who rated credit default swaps that brought down the economy and forced us to get into further debt to bail out the financial sector,” he argues in his video. “They're the ones who allowed that to occur.”

Omekongo Dibinga says he thinks Americans simply don’t care what the country’s credit rating is.

“Most Americans are too busy worrying about their own credit to care about America's credit rating,” he says in his video.  “With our AAA rating, we've still had a Great Depression and a Great Recession. People have still lost their homes and thousands of jobs. Is this what our rating got us?”

Dibinga says the lowered rating may even serve as a needed wake-up call for politicians and corporations.

"Maybe this credit will be good for America," Dibinga said. "Maybe these corporate types at the top will start to think twice, but for the rest of us, we're going to wake up tomorrow and our life won't seem to have changed because of a downgrade.”

Melissa Fazli from Yorba Linda, California, sent a video reaction shortly after the S&P downgraded the U.S. credit rating. She says that everyone should pay as he goes: “No more debt.”

She says she also believes the downgrade is “a kick in the face” but hopes that people will vote for politicians who will “wake up” and “get their act together and work together.”

And those commenting on and haven't shied away from sharing their views either. Here's a sampling of what you had to say:

"S&P was absolutely right to downgrade the US government–the country is frighteningly deep in debt. For decades, the federal government has proved itself utterly incompetent in managing the taxpayers' money and this is the result. And if government can't manage our money responsibly, it's time to cut up the credit cards–we need a balanced-budget amendment." - CNN commenter HenryMiller

" The S&P is full of it. This is the same agency that assured investors and gave excellent ratings to toxic mortgage back derivatives. They are
responsible with the banks for the finical [sic] crisis and now they are playing more games and leading us into a double dip. Make no bones, they have their own agenda. I would not be surprised if they are short-selling and making out like bandits. These people are all crooks!!!" - CNN commenter Daniel Tal

"good for S& clowns in Washington want to act like fools? You get called on it!!!!!" - CNN commenter stooges999

"And they are "sticking by their decision"? Wonder if the S&P is also "sticking by their decision" on the sub-prime mortgages the touted as
AAA before the collapse in 2008???" - CNN commenter esmith3750

"Anyone who listens to S and P after the crimes they committed during the financial meltdown is an idiot" - CNN commenter Jon King

In response to that comment user Barfly52 wrote: "Looks like investors are listening. Market down 325 points in first 75 minutes."

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Filed under: Business • Economy • Finance
soundoff (1,062 Responses)
  1. MInnie

    I think it's time we stopped helping other countries financially – it's not like they ever pay the USA back. I am tired of seeing our tax monies going to help in countries where the inhabitants profess to hate America. Let's focus on getting our own country together – taking care of our homeless, our children, our elderly, our educational system, our health care issues, our law enforcement problems. The heavens know we certainly have plenty of problems in our own back yards.

    August 8, 2011 at 10:00 pm | Report abuse |
  2. Stacy

    The S&P needs to downgrade it further! The B.S. in Washington has got to stop! Obama's policies only help those who refuse to help themselves. Leave the rest of us the hell alone, Mr. President – just get the budget balanced so that our kids will have some sort of a future!!

    August 8, 2011 at 10:00 pm | Report abuse |
    • kris

      Did you feel the same about previous administrations, or do you think Obama is the only president that should balance the budget?

      August 8, 2011 at 11:01 pm | Report abuse |
  3. Charlie

    3 years too late!!!

    August 8, 2011 at 10:01 pm | Report abuse |
  4. Mark

    Politically we deserve a downgrade because we are incapable of any rational discourse and our representative are more interested in positioning themselves for a political race than serving the interests of the country. That is why a crisis was precipitated by Republicans who had all voted for the very spending they suddenly thought shouldn't be paid for. Bottom line, both the Republican Party and the Tea Party want to wreck our economy so they can say "told you so". Pathetic and disgraceful are just 2 of the appropriate words.

    August 8, 2011 at 10:02 pm | Report abuse |
    • larry


      August 8, 2011 at 10:09 pm | Report abuse |
    • notbob

      What a partisan fool you are: buyinh into the lowest common denominator: partisan bickering. The debt is a problem created by all politicians and parties with every spending bill they passed. They have collectively overspent for the better part of 60 years and the results are finally playing out. In old farm terms the chickens have come home to roost!

      To still blame this on one party or the other shows how simply minded you are when it comes to world events, justifying the worlds view of our citizens as idiots.

      August 8, 2011 at 10:14 pm | Report abuse |
    • RandyM

      larry, you are wrong, Obama and Reid made this an issue. Boehner put revenues on the table but only if Obama would put credits on the table. Obama refused and Boehner pulled revenues. This was Reids bill and he held it til the last minute. Reids bill would not have gone through even a week or a day earlier. But enough R got scared and did not want to be labeled as wrecking the ecomomy. This was a Dems bill and was passed in both houses by Dems. Tea Party did not vote for the bill. SP met with Geitner in April and the WH admin knew they needed $400 billion per year in cuts to maintain the AAA rating. larry you are drinking the kool-aid and you didn't even know it.

      August 8, 2011 at 10:24 pm | Report abuse |
  5. Tim

    Obama only has himself to blame for the Obama Downgrade. Now maybe he will get serious about debt reduction.

    August 8, 2011 at 10:03 pm | Report abuse |
    • dorkus

      Congress will never change. Greed soaked conservatives and PC spewing libs are never going to agree.

      August 8, 2011 at 10:17 pm | Report abuse |
  6. Robbin

    972 comments so far some seem to be enjoying this crash, I bet you guys are the buy low sell high stock holders.

    August 8, 2011 at 10:04 pm | Report abuse |
    • notbob

      Enjoying is not the right term for how I feel, I am gratified to see the laws of economics playing out in real time. Even the United States cannot live beyond its means regardless of what the talking heads on CNN tell you. Ron Paul has been saying this day was coming for 20 years and I have been agreeing with him for 10 of those years, if you are still crazy enough to beleive that the bubble pump and dump economy we have had ion the past is viable any longer I pity you!

      August 8, 2011 at 10:17 pm | Report abuse |
    • RandyM

      Not many buy high sell lows guys left in the business.

      August 8, 2011 at 10:41 pm | Report abuse |
  7. larry


    August 8, 2011 at 10:05 pm | Report abuse |
  8. commonsense

    The U.S. credit rating should not even be AA +. They should not be allowed to borrow a dime. If you borrowed more money than you earned, would any bank loan continue to loan you money? I bet NOT.

    August 8, 2011 at 10:06 pm | Report abuse |
  9. sickofmorons

    I guess this is the first major sign to the US and the US gov't that we are no longer #1 in the world. The world has gone on without us while we remained steadfast in our bullying, temper-tantrum ways. They gave us a chance to move ahead and we said "no, we're better than anyone else". Guess what, America, we aren't and we are so far behind we don't even know it.

    August 8, 2011 at 10:07 pm | Report abuse |
    • RandyM

      That was weird.

      August 8, 2011 at 10:26 pm | Report abuse |
  10. Jon

    Where do I stand on S&P downgrade? 99.9% of the population could give a crap what I think, they're too busy with themselves and their "important" opinion. And 100% of the government could care less what taxpayers and the voters think as long as they can make themselves some money.

    August 8, 2011 at 10:08 pm | Report abuse |
  11. Erika

    I guess the emperor has no clothes on. It is only logical that you don't want to lend money to a country that plans to have trillions of deficit in the next few years.

    August 8, 2011 at 10:08 pm | Report abuse |
  12. bill

    S&P is playing both sides against the middle. S&P was instrumental in wrecking the economy and now instrumental in wrecking the stock market. They must be making some of that insider trading money selling worthless derivatives and then leveraging the results by shorting the market.

    August 8, 2011 at 10:09 pm | Report abuse |
    • bad to the bone

      I aggrie, the rats on wallstreet are going to get there's soon. There are to many americans struggling and a lot of guns in this country. Not every one is fooled by the market fixers. Allen greenspan needs to find a hole to crawl in soon. After shooting down broksley boorne who tried to warn us about this over the counter dirivative market ( the black box) beware wallstreet if I lose my house you lose your life

      August 8, 2011 at 10:26 pm | Report abuse |
    • RandyM

      So you are saying SP should make the same mistake twice so that somehow benefits us? How does SP making another mistake correct the earlier one?

      August 8, 2011 at 10:28 pm | Report abuse |
  13. Ricardo Costa

    The question is why are they doing it now ? This is three years too late.

    August 8, 2011 at 10:11 pm | Report abuse |
    • RandyM

      Sounds like a purely partisan statement. Am I wrong? Don't drink te kool-aid.

      August 8, 2011 at 10:52 pm | Report abuse |
  14. Ron

    I feel what led to the downgrade in America’s rating says a lot about the governance currently. It isn’t responsible because those charged with the task don’t want to work together. That is imperative. While the current conversation was changed in government it isn’t that simple. In addition it appears the current congress doesn’t have America’s interests at heart. Only in getting re-elected & getting their narrow personal bias passed. Example is the Minority Leader in the Senate said so. His only concern was for Obama not to be re-elected. In the remote past the two parties had differences but worked together. Yet our present predicament goes back to the Bush as well as the current Obama administrations was well as the Congresses during these periods. They have shown they want to serve special interests. Echoed in the halls of our government were spending & tax cuts without thought of the overall impact on America. Reining in the deficit was avoided for years.

    August 8, 2011 at 10:11 pm | Report abuse |
    • RandyM

      Yes I think it high time the Rep and Dems both quit drinking the parties kool-aid. Lets put thought and action into our votes. Don't believe your own party anymore than you believe the other. Don't vote the same way just because your family votes that way. Don't listen to the incessant rhetoric and bickering. Learn the issues and make your candidate answer tough questions. Understand why they vote the way they do but don't accept it. Make your own decisions. Let your representative know where you stand. Don't accept pat answers from anyone. Know the questions and ask them.

      August 8, 2011 at 10:50 pm | Report abuse |
  15. Ross

    This downgrade happened on the watch of President Obama and his administration. He will never take ownership and will continue to blame President Bush. That straw man is dead and the nation knows it. Barack Obama a one term Preseident that will go down as one of the worst leaders of our great country.

    August 8, 2011 at 10:14 pm | Report abuse |
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